Q3 2025 Eagle Point Income Co Inc Earnings Call

November 13, 2025

Operator: Only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Darren Daugherty. Thank you. You may begin.

Operator: Only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Darren Daugherty. Thank you. You may begin.

Will follow the formal presentation, if anyone should require operator assistance. Please press star zero on your telephone keypad.

It is now my pleasure to introduce your host Darin Dougherty. Thank you you may begin.

Thank you operator, and good morning, welcome to Eagle point income Company's earnings conference call for the third quarter of 2025 speaking on the call today are Thomas Maciejewski, Chairman and Chief Executive Officer of the company and co senior principal a portfolio manager for the company's adviser and leaner OMNOVA Chief accounting.

Darren Daugherty: Thank you, operator. Good morning. Welcome to Eagle Point Income Company's earnings conference call for Q3 2025. Speaking on the call today are Thomas Majewski, Chairman and Chief Executive Officer of the company; Dan Ko, Senior Principal and Portfolio Manager for the company's advisor; and Lena Umnova, Chief Accounting Officer for the advisor. Before we begin, I would like to remind everyone that the matters discussed on this call include forward-looking statements or projected financial information that involve risks and uncertainties that may cause the company's actual results to differ materially from such projections. For further information on factors that could impact the company and the statements and projections contained herein, please refer to the company's filings with the Securities and Exchange Commission.

Dan Ko: Just an easier way for us to kind of express views on our positions.

Officer for the advisor.

Before we begin I would like to remind everyone that the matters discussed on this call include forward looking statements or projected financial information that involve risks and uncertainties that may cause the company's actual results to differ materially from such projections.

Eric Zuick: Thanks. Last one for me, just making sure I'm following your thoughts correctly with reducing the dividend going into Q1 of next year. Safe to assume, I think you mentioned it's primarily due to the Fed rate cuts that we've seen and maybe some more coming. Safe to kind of assume that you feel the earnings power of the portfolio is likely to trend down somewhat here from this level that you reported in the most recent quarter?

For further information on factors that could impact the company and the statements and projections contained herein. Please refer to the company's filings with the Securities and Exchange Commission.

Each forward looking statement or projection of financial information made during this call is based on the information available to US as of the date of this call. We disclaim any obligation to update our forward looking statements unless required by law.

Darren Daugherty: Each forward-looking statement or projection of financial information made during this call is based on the information available to us as of the date of this call. We disclaim any obligation to update our forward-looking statements unless required by law. Earlier today, we filed our Q3 2025 financial statements and investor presentation with the Securities and Exchange Commission. These are also available in the investor relations section of the company's website, eaglepointincome.com. A replay of this call will also be made available later today. I will now turn the call over to Thomas Majewski, Chairman and Chief Executive Officer of Eagle Point Income Company. Tom?

Dan Ko: Yeah, I mean, it has something to do, obviously, with rates. It is a driver of that for the CLO debt portfolio. We are making some rotations within the CLO equity portfolio to kind of increase earnings and to offset some of that, as well as some other higher-yielding investments. We change the dividend rate to what we see as kind of the near-term kind of rate that can be supported. Obviously, many factors kind of go into determining that each quarter along with the board. At least for Q1, we think that that's kind of the appropriate level.

Earlier today, we filed our third quarter 2025 financial statements, an investor presentation with the Securities and Exchange Commission.

These are also available in the Investor Relations section of the Companys website Eagle point income Dot com.

A replay of this call will also be made available later today.

I will now turn the call over to Thomas Maciejewski, Chairman and Chief Executive Officer of Eagle Point income Company Tom.

Thank you Darin and good morning, everyone. We're glad you're joining the call with us today.

Thomas Majewski: Thank you, Darren. Good morning, everyone. We're glad you're joining the call with us today. EIC had a positive Q3. Our NAV increased, and we covered our distribution from both net interest income as well as recurring cash flows. The scale and experience of the Eagle Point platform remain key advantages as we seek to capitalize on opportunities in a dynamic market environment for CLO investing. For the quarter, the company generated net investment income, less realized losses of $0.26 per share. This was made up of $0.39 per share of net investment income and offset by $0.13 of realized capital losses. Recurring cash flows totaled $17 million or $0.67 per share, and this is consistent with the prior quarter's $18 million or $0.67 per share. Recurring cash flows exceeded our regular common distribution and total expenses by $0.05 per share.

EIC had a positive third quarter.

Eric Zuick: Thank you for taking my questions.

Our NAV increased and we covered our distribution from both net interest income as well as recurring cash flows.

Dan Ko: Of course.

Operator: Thank you. Our next question comes from the line of Timothy Degasino with B. Riley Securities. Please proceed with your question.

The scale and experience of the Eagle point platform remain key advantages as we seek to capitalize on opportunities in a dynamic market environment for CLO investing.

Timothy Degasino: Yeah. Hi. Thank you. Kind of piggybacking off that last question in terms of asset rotation, it seems quarter over quarter CLO debt decreased. That kind of breaks the trend of the past four quarters of more CLO debt assets. It also seems like you're holding a lot more cash. I was just kind of wondering if you could provide some color around that activity. Thank you.

For the quarter the company generated net investment income less realized losses of 26 per share.

This was made up of 39 cents per share of net investment income and offset by a 13, a realized capital losses.

Recurring cash flows totaled $17 million or <unk> 67 per share.

And this is consistent with the prior quarter's $18 million or <unk> 67 per share.

Dan Ko: Yeah. Sure. Thanks, Tim, for your question. I mean, there have been a lot of refis and resets that have been happening in the CLO market as kind of the spreads for some of the older season kind of positions were in the money for the equity to refinance. We saw a lot of paydowns in those investments. It's obviously sad to see the higher yields go away, but it's also good to get par back a lot sooner than we had anticipated, certainly when we bought some of these at discounts. We have seen a little bit of a build-up in cash as we announced that some of that cash is going to be used to pay down the EICBs later this quarter.

Our current cash flows exceeded our regular common distribution and total expenses by five per share.

NAV rose to $14 21 per share as of September 30th and that's up from $14 eight per share at the end of June.

Thomas Majewski: NAV rose to $14.21 per share as of 30 September, that's up from $14.08 per share at the end of June. The increase reflects our continued portfolio performance, net investment income coverage of our common distribution, improving market conditions, and disciplined capital management. Our GAAP return on equity for Q3 was 3%. During the quarter, we deployed $60 million into new investments. The new CLO equity we purchased during the quarter had a weighted average effective yield of 16.6%. The company's ability to invest in both CLO debt and CLO equity in both the primary and secondary markets allows us to assess relative value opportunities wherever they present themselves. Backed by Eagle Point's deep expertise in the CLO market, we believe this approach positions us to deliver attractive returns and long-term value for shareholders.

The increase reflects our continued portfolio performance net investment income coverage of our common distribution improving market conditions and disciplined capital management.

GAAP return on equity for the third quarter was 3%.

During the quarter, we deployed $60 million into new investments.

The new CLO equity, we purchased during the quarter had a weighted average effective yield of 16, 6%.

Dan Ko: That's kind of, I guess, why we have a little bit more cash than usual. Also, it's kind of finding the right kind of relative value in investments. CLO junior debt tranches are by no means a sector that we're trying to exit, but trying to pick our spots given that most of the paper that we think is interesting today is actually less new issue, but probably more refis and resets. They do come with a little bit of hair in the portfolios. They're not as squeaky clean as new issue is, but you can pick up 50 to 100 basis points potentially. Kind of picking our spots and then also trying to pick our spots for CLO equity as well as other higher-yielding investments.

The companys ability to invest in both CLO debt and CLO equity in both the primary and secondary markets allows us to assess relative value opportunities wherever they present themselves.

Backed by Eagle points deep expertise in the CLO market. We believe this approach positions us to deliver attractive returns and long term value for shareholders.

We completed three resets and for refinancings of our CLO equity positions during the quarter.

Co senior principal of portfolio manager for the company's adviser and leaner than Nova Chief Accounting officer for the advisor before we begin I would like to remind everyone that the matters discussed on this call include forward looking statements or projected financial information that involve risks and uncertainties that may cause the company's actual results to differ materially.

Thomas Majewski: We completed 3 resets and 4 refinancings of our CLO equity positions during the quarter. These actions lowered the debt costs in those CLOs, and in the case of the resets, extended the reinvestment periods, which continue to enhance our portfolio's weighted average remaining reinvestment period and long-term earnings power. During Q3, we issued $35 million of preferred stock through our at-the-market program. In light of recent Fed rate cuts, earlier today we announced the scheduled redemption of 100% of our 7.75% Series B term preferred stock. This redemption allows us to further optimize our capital structure and reduce financing costs, positioning the company to enhance earnings power for our common shareholders over time. Also, during the quarter, we repurchased $21 million of common stock at an average discount to NAV of 8.3%.

These actions lowered the debt costs and those clo's and in the case of the resets extended the reinvestment periods, which continue to enhance our portfolio's weighted average remaining reinvestment period and long term earnings power.

Timothy Degasino: Great. Just as a follow-up to that on the cash component, you mentioned paying down the Bs. Is that the primary focus, to pay down the Bs with the cash, or will you also be looking to buy back common shares? Just trying to understand where we could see the cash go more towards. Is it going to be paying down the Bs 100% and buying back some common, or will you really just be focused on paying down the Bs? Thank you.

Cheerio from such projections.

During the third quarter, we issued $35 million of preferred stocks for our at the market program.

In light of recent fed rate cuts earlier today, we announced the scheduled redemption of 100% of our 775% series B term preferred stock.

This redemption allows us to further optimize our capital structure and reduce financing costs positioning the company to enhance earnings power for our common shareholders over time.

Dan Ko: Yeah, I mean, it's really to focus on the Bs, and we haven't publicly announced any sort of share buyback. I'm sorry, I'm sorry. We have announced a share buyback. I apologize. Yes, I mean, we'll be using it for both so that we'll pay back the Bs, and then I think we've said in the script that we'll aggressively look to buy back the common. We'll be using it ultimately for both.

Earlier today, we filed our third quarter 2025 financial statements in Investor presentation, with the Securities and Exchange Commission.

Also during the quarter, we repurchased $21 million of common stock at an average discount to NAV of eight 3%.

These are also available in the Investor Relations section of the company's website Eagle point income Dot Com a.

This resulted in NAV accretion of seven cents per share.

A replay of this call will also be made available later today.

Thomas Majewski: This resulted in NAV accretion of $0.07 per share. Today, we announced that our board has increased our common share repurchase authorization to $60 million from $50 million, which had been previously announced in June 2024. Since June through 31 October, we've repurchased in total $33 million of common stock at an average discount of 8.8% to NAV, creating $0.11 per share of NAV accretion for our shareholders. These actions reflect our ongoing commitment to enhancing shareholder value while maintaining prudent leverage and balance sheet flexibility. We plan to continue to be aggressive in buying back shares when they are trading at a discount to NAV. Since our last earnings call in August, the Fed has cut interest rates twice.

Today, we announced that our board has increased our common share repurchase authorization to $60 million from $50 million, which had been previously announced in June of this year.

I will now turn the call over to Thomas would you ski Chairman and Chief Executive Officer of Eagle Point income Company Tom.

Timothy Degasino: Okay. Great. Thank you so much.

Thank you Darren and good morning, everyone. We're glad you're joining the call with us today.

Since June through October 31, we have repurchased in total $33 million of common stock and an average discount of eight 8% to NAV, creating a <unk> 11 per share of NAV accretion for our shareholders.

Operator: Thank you. Our next question comes from the line of Christopher Nolan with Ladenburg Thalmann. Please proceed with your question.

EIC had a positive third quarter.

Our NAV increased and we covered our distributions from both net interest income as well as recurring cash flows.

Christopher Nolan: Hi. Thanks for taking my questions. On page 22, you have the largest industry concentration is software and technology. How much of that might be AI or data center related, please?

The scale and experience of the Eagle point platform remain key advantages as we seek to capitalize on opportunities in a dynamic market environment for CLO investing.

These actions reflect our ongoing commitment to enhancing shareholder value, while maintaining prudent leverage and balance sheet flexibility.

For the quarter the company generated net investment income less realized losses of 26 cents per share.

Dan Ko: Not a ton, to be honest. Most of this is kind of enterprise software. It's kind of software that's really embedded in a lot of companies' operations, so it's stickier credits. It's harder for companies to pull out the software that they're using on a daily basis because it's just the cost of replacing, meaning both just the actual cost, but also just the time and effort that goes into replacing the software is very costly. It's been generally one of the higher industry concentrations within the loan market and has generally performed well over the past several cycles.

We plan to continue to be aggressive in buying back shares when they're trading at a discount to NAV.

This was made up of 39 cents per share of net investment income and offset by a 13 cents I realized capital losses.

Since our last earnings call in August the fed has cut interest rates twice.

Our CLO debt portfolio, which makes up the majority of our holdings is directly indexed to short term rates and we will earn lower coupons as a result of the fed rate cuts.

Recurring cash flows totaled $17 million or 67 cents per share.

Thomas Majewski: Our CLO debt portfolio, which makes up the majority of our holdings, is directly indexed to short-term rates and will earn lower coupons as a result of the Fed rate cuts. Earlier today, we declared 3 monthly distributions of $0.11 per share for Q1 2026. This is a reduction from our previous monthly distribution of $0.13 per share and reflects largely the impact of the Fed rate cuts. The company's board considers numerous factors when setting the monthly distribution level, including cash flow generated from the company's investment portfolio, GAAP earnings, and the company is required to distribute substantially all of its taxable income. We believe this new distribution level is aligned with the current interest rate environment and the company's near-term earnings potential.

And this is consistent with the prior quarter's $18 million or <unk> 67 per share.

Earlier today, we declared three monthly distributions of <unk> 11 per share for the first quarter of 2026.

Recurring cash flows exceeded our regular common distribution and total expenses by five cents per share.

This is a reduction from our previous monthly distribution of <unk> 13 per share.

<unk> rose to $14.21 per share as of September 30th and that's up from $14.08 per share at the end of June.

Christopher Nolan: Great. As a follow-up, just following up to the most recent question talking about investing in the Bs, when you're looking at deals to invest in, is there particular industries that you're looking to get more exposure on, or does each CLO seem to have a broad-based industry composition?

And reflects largely the impact of the fed rate cuts.

The company's board considered numerous factors when setting the monthly distribution level, including cash flow generated from the Companys investment portfolio GAAP earnings and the company is required to distribute substantially all of its taxable income.

The increase reflects our continued portfolio performance net investment income coverage of our common distribution improve.

Improving market conditions and disciplined capital management.

We believe this new distribution level is in line with the current interest rate environment and the company's near term earnings potential.

Our GAAP return on equity for the third quarter was 3%.

Dan Ko: Yeah. I mean, most CLOs have very similar industry concentrations to the loan market in that CLO managers are generally buying kind of what the market has put before them. You might see a little bit of tweaks here and there, and maybe a certain manager decides not to buy any kind of oil and gas names because they've been burned in the past. It's kind of hard to avoid some of the higher technology and healthcare. Those are typically the two highest concentrations within the loan market. Most people are not materially kind of off-index, if you will.

During the quarter, we deployed $60 million into new investments.

CLO debt has a floating rate asset. So it is expected that our earning power will move around as benchmark rates move just as it increases when rates are rising.

Thomas Majewski: CLO debt is a floating rate asset. It is expected that our earning power will move around as benchmark rates move, just as it increases when rates are rising. That said, we believe junior CLO debt continues to offer compelling risk-adjusted returns compared to comparably rated corporates, given its low credit expense and premium yield. I'll now turn the call over to Senior Principal and Portfolio Manager Dan Ko for an update on the market.

The new CLO equity, we purchased during the quarter had a weighted average effective yield of 16, 6%.

We believe junior CLO debt continues to offer compelling risk adjusted returns compared to comparable rated corporates, given its low credit expense and premium yield.

The companys ability to invest in both CLO debt and CLO equity in both the primary and secondary markets allows us to assess relative value opportunities wherever they present themselves.

I'll now turn the call over to senior principal and portfolio manager Dan co for an update on the market.

By Eagle points deep expertise in the CLO market. We believe this approach positions us to deliver attractive returns and long term value for shareholders.

Thanks, Tom I'll provide a quick update on both the loan and CLO markets during the third quarter.

Christopher Nolan: Great. Thank you.

Dan Ko: Thanks, Tom. I will provide a quick update on both the loan and CLO markets during Q3. The S&P/LSTA Leveraged Loan Index returned 1.6% for the quarter and continued to perform well through October, returning 0.3% for the month. There were 5 leveraged loan defaults during the quarter, and as of 30 September, the trailing 12-month default rate stood at 1.5%, up from 1.1% as of 30 June, but well below the long-term average of 2.6%. The widely reported First Brands Group default caused most of the increase in the default rate but had a minimal impact on the broader CLO market. First Brands Group accounts for only 25 basis points of our portfolio on a look-through basis, and we do not view it as an indication of widespread credit weakness.

Dan Ko: Thanks for your questions.

We completed three resets and for refinancings of our CLO equity positions during the quarter.

The S&P UBS leveraged loan index returned one 6% for the quarter and continued to perform well through October returning 0.3% for the month there.

Operator: Thank you. We have reached the end of the question and answer session. Therefore, I'll now turn the call back over to Thomas Majewski for closing comments.

There were five leveraged loan defaults during the quarter and as of September 30th that trailing 12 month default rates stood at one 5% up from one 1% as of June 30th, but well below the long term average of two 6%.

Eric Zuick: Great. Thank you very much, everyone. We appreciate your interest in Eagle Point Income Company. We'll continue to work very hard for shareholders. The biggest thing, continuing to aggressively buy back our stock using the buyback program. Good to get the call of the preferred at the highest rate. We'll get that done this year, continue to optimize the company's balance sheet, and continue to look for the best investments for the company. We appreciate your time and effort, and your time and interest, and we appreciate joining us today. Thank you very much.

During the third quarter, we issued $35 million of preferred stocks for our at the market program.

The widely reported first brands default caused most of the increase in the default rate, but had a minimal impact on the broader CLO market.

In light of recent fed rate cuts earlier today, we announced the scheduled redemption of 100% of our 775% series B term preferred stock.

First brands accounts for only 25 basis points of our portfolio on a look through basis, and we do not view it as an indication of widespread credit weakness.

This redemption allows us to further optimize our capital structure and reduce financing costs positioning the company to enhance earnings power for our common shareholders overtime.

Note that our CLO double b's benefit from par subordination to the loss from first brands is borne by the CLO equity.

Dan Ko: Note that our CLO double Bs benefit from par subordination, so the loss from First Brands was borne by the CLO equity. The company's portfolio default exposure as of 30 September stood at 41 basis points, which is well below broader market levels. With rates expected to fall further, defaults should remain muted as loan issuers will have much lower interest costs. In addition, corporate fundamentals across the loan market remain resilient, with issuers generally continuing to grow revenue and EBITDA despite the effects of inflation, tariffs, and rates over the past year. During the quarter, approximately 6.8% of leveraged loans, or roughly 27% annualized, were prepaid at par. In general, loan issuers continue to be proactive in tackling their near-term maturities, and the maturity wall, as we have mentioned on prior calls, continues to be pushed out.

Operator: Thank you. Ladies and gentlemen, this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

The companys portfolio of default exposure as of September 30th stood at 41 basis points, which is well below broader market levels.

Also during the quarter, we repurchased $21 million of common stock at an average discount to NAV of eight 3%.

With rates expected to fall further defaults you remain muted as loan issuers will have much lower interest costs.

This resulted in NAV accretion of seven cents per share.

Today, we announced that our board has increased our common share repurchase authorization to $60 million from $15 million, which had been previously announced in June of this year.

In addition, corporate fundamentals across the loan market remained resilient with issuers generally continuing to grow revenue and EBITDA. Despite the effects of inflation tariffs and rates over the past year.

Since June through October 31st we've repurchased in total $33 million of common stock at an average discount of eight 8% to NAV grading 11 cents per share of NAV accretion for our shareholders.

During the quarter approximately six 8% of leveraged loans are roughly 27% annualized where prepaid at par and.

In general loan issuers continue to be proactive in tackling their near term maturities and the maturity wall as we have mentioned on prior calls continues to be pushed out.

These actions reflect our ongoing commitment to enhancing shareholder value, while maintaining prudent leverage and balance sheet flexibility.

In terms of CLO, new issuance, we saw 53 billion of volume during the quarter.

Dan Ko: In terms of CLO new issuance, we saw $53 billion of volume during the quarter. This was up slightly from $51 billion in Q2. Reset and refinancing activity for Q3 was $69 billion and $36 billion, respectively, both of which represented significant increases from the prior quarter. CLO debt spreads remained resilient despite the many bouts of volatility that we have observed in Q3. Although lower base rates weigh on the earnings power of our CLO debt portfolio, we view the yield and low credit expense offered by CLO double Bs as very attractive relative to comparably rated fixed income instruments. Meanwhile, our CLO equity exposure provides a partial offset to lower rates as it is less rate sensitive. Returns are largely driven by spreads, not base rates.

We plan to continue to be aggressive in buying back shares when they're trading at a discount to NAV.

This was up slightly from 51 billion in the second quarter.

Reset and refinancing activity for the third quarter was 69 billion and 36 billion respectively.

Since our last earnings call in August the fed has cut interest rates twice.

Our CLO debt portfolio, which makes up the majority of our holdings is directly indexed to short term rates and will earn lower coupons as a result of the fed rate cuts.

Both of which represented significant increases from the prior quarter.

CLO debt spreads remained resilient. Despite the many bouts of volatility that we have observed in the third quarter, although lower base rates weigh on the earnings power of our CLO debt portfolio, we view the yield and low credit expense offered by Shilo double B's is very attractive relative to comparable <unk> rated fixed income instruments.

Earlier today, we declared three monthly distributions of <unk> 11 per share for the first quarter of 2026.

This is a reduction from our previous monthly distribution of <unk> 13 cents per share.

And reflects largely the impact of the fed rate cuts.

Meanwhile, our CLO equity exposure provides a partial offset to lower rates as it is less rate sensitive.

Returns are largely driven by spreads not base rates.

In many respects slower rates can be constructive for the asset class easing interest cost for loan issuers and supporting continued credit stability. While also seeing increased LBO activity that contributes to new loan supply and wider loan spreads.

Dan Ko: In many respects, lower rates can be constructive for the asset class, easing interest costs for loan issuers and supporting continued credit stability, while also seeing increased LBO activity that contributes to new loan supply and wider loan spreads. As of 30 September, we had $52 million of cash in undrawn revolver capacity available for investment and common stock repurchases, providing ample liquidity to act on the best relative value opportunities and deliver long-term value for our shareholders. You know, with that, I'll hand it over to our advisors, Chief Accounting Officer Lena Umnova, to walk through our financial results.

We believe this new distribution level is in line with the current interest rate environment and the company's near term earnings potential.

CLO debt has a floating rate asset. So it is expected that our earning power will move around as benchmark rates move just as it increases when rates are rising that said, we believe junior CLO debt continues to offer compelling risk adjusted returns compared to comparable rated corporates given its low credit expense.

As of September 30th we had $52 million of cash and Undrawn revolver capacity available for investment and common stock repurchases, providing ample liquidity to act on the best relative value opportunities and deliver long term value for our shareholders.

With that I'll hand, it over to our advisors, Chief Accounting Officer, Nino, Nova to walk through our financial results.

And premium yield.

I'll now turn the call over to senior principal and portfolio manager Danko for an update on the market.

Thank you Dan.

First quarter. The company recorded net investment income less realized losses of 7 million or 26 cents per share. This compares to NII and realized gains of 39 cents per share for the last quarter and NII and realized gains of 57 cents per share for the third quarter of last year.

Lena Umnova: Thank you, Dan. For Q3, the company recorded net investment income, less realized losses of $7 million or $0.26 per share. This compares to NII and realized gains of $0.39 per share for Q2 and NII and realized gains of $0.57 per share for Q3 of last year. Including unrealized portfolio gains, GAAP net income was $11 million or $0.43 per share for Q3 2025. The company's Q3 net income was comprised of investment income of $16 million and unrealized gains on investments of $5 million, partially offset by financing and operating expenses of $6 million, realized losses of $3 million, and unrealized losses on certain liabilities recorded at fair value of $1 million. Additionally, other comprehensive income was $1 million for Q3.

Thanks, Tom I'll provide a quick update on both the loan and CLO markets during the third quarter.

The S&P U B S leveraged loan index returned one 6% for the quarter and continued to perform well through October returning 0.3% for the month.

There were five leveraged loan defaults during the quarter and as of September 30th the trailing 12 month default rate stood at one 5% up from one 1% as of June 30th, but well below the long term average of two 6%.

Including unrealized portfolio gains GAAP net income was 11 million or <unk> 43 per share for the third quarter of 2025.

Company's third quarter net income was comprised of investment income of 16 million and then realized gains on investments of five Neil N, partially offset by financing and operating expenses up six nealon realized losses of three Neil N and then realized losses certain liabilities are recorded at fair value of one.

The widely reported first brands default caused most of the increase in the default rate, but had a minimal impact on the broader CLO market.

First brands accounts for only 25 basis points of our portfolio on a look through basis, and we do not view it as an indication of widespread credit weakness.

Neil N. Additionally, other comprehensive income was one <unk> for the third quarter.

Note that our CLO double b's benefit from par subordination. So the loss from first brands is borne by the CLO equity.

We paid three months of distributions of 13 cents per share during the quarter and earlier today, we declared three monthly distributions of 11 cents per share for the first quarter of next year.

The company's portfolio of default exposure as of September 30th stood at 41 basis points, which is well below broader market levels.

Lena Umnova: We paid 3 monthly distributions of $0.13 per share during the quarter. Earlier today we declared 3 monthly distributions of $0.11 per share for the Q1 of next year. As of September month-end, the company had outstanding preferred equity securities which totaled 35% of total assets less current liabilities. This is at the top end of our long-term target leverage ratio range of 25% to 35%, where we expect to operate the company under normal market conditions. The company's assets coverage ratio at quarter end for preferred stock, calculated in accordance with Investment Company Act requirements, was 285%. This is comfortably above the statutory requirement of 200%.

With rates expected to fall further default should remain muted as loan issuers will have much lower interest costs.

At September month end, the company had outstanding preferred equity securities, which totaled 35% of total assets less current liabilities.

This is at the top end of our long term target leverage ratio range of 25% to 35%, where we expect to operate the company under normal market conditions.

During the quarter approximately six 8% of leveraged loans are roughly 27% annualized where prepaid at par and.

The company's address coverage ratio at quarter end for preferred stock calculated in accordance with investment Company Act requirements was 285%. This is comfortably above the statutory requirement of 200%.

In general loan issuers continue to be proactive in tackling their near term maturities and the maturity wall as we have mentioned on prior calls continues to be pushed out.

In terms of CLO, new issuance, we saw 53 billion of volume during the quarter. This was up slightly from 51 billion in the second quarter.

As of September month end, the company's NAV was 256, nealon or $14.21 per share an increase versus $14 eight per share as of June month end.

Lena Umnova: As of September month end, the company's NAV was $356 million or $14.21 per share, an increase versus $14.08 per share as of June month end. During the quarter, we repurchased over 1.5 million shares of our common stock for the total amount of $21 million at the average discount to NAV of 8.3% per share. This has resulted in NAV accretion of $0.07 per share. We would like to highlight that all repurchased shares were retired. Looking at our portfolio activity during the month of October, the company received recurring cash flows on its investment portfolio of $17 million. I would like to highlight that some of the company's investments are still expected to make payments later in the quarter.

Reset and refinancing activity for the third quarter was 69 billion and 36 billion respectively.

During the quarter, we repurchased over one 5 million shares of our common stock with a total amount of 21, Neil N at the average discount to NAV of eight three percentage share. This has resulted in NAV accretion of seven cents per share.

Both of which represented significant increases from the prior quarter.

CLO debt spreads remain resilient. Despite the many bouts of volatility that we have observed in the third quarter, although lower base rates weigh on the earnings power of our CLO debt portfolio, we view the yield and low credit expense offered by Shilo double B's is very attractive relative to comparable <unk> rated fixed income instruments.

We would like to highlight that all of the purchase shares were retired.

Looking at our first of all the activity during the month of October the company received reoccurring cash flows on its investment portfolio of $17 million.

Meanwhile, our CLO equity exposure provides a partial offset to lower rates as it is less rate sensitive.

I'd like to highlight that some of the Companys investments I still expect it to make payments later in the quarter.

Returns are largely driven by spreads not base rates and.

As of October month end net authentic investment transactions and settlement. The company had 55 million of cash and revolver capacity available for investment and other purposes.

In many respects slower rates can be constructive for the asset class easing interest cost for loan issuers and supporting continued credit stability. While also seeing increased L. B O activity that contributes to new loan supply and wider loan spreads.

Lena Umnova: As of October month end, net of pending investment transactions and settlement, the company had $55 million of cash and revolver capacity available for investment and other purposes. Management's unaudited estimate of the company's NAV as of October month end was between $13.94 and $14.04 per share. I will now turn the call back over to Tom, who will provide closing remarks before we take your questions.

Management's unaudited estimate of the company's NAV as of October month end was between $13 94 and.

And $14 <unk> per share.

I will now turn the call back over to Tom who will provide closing remarks before we take your questions.

Thanks Lina.

The third quarter demonstrated our focus on actively managing our portfolio and executing our strategy across shifting market conditions.

Thomas Majewski: Thanks, Lena. The Q3 demonstrated our focus on actively managing our portfolio and executing our strategy across shifting market conditions. We were selective in finding the best relative value opportunities between CLO debt and equity. We also remained active with our share repurchase program, aggressively buying back stock, which we believe is undervalued. The board increased the program, giving us more flexibility to keep buying our own stock at a discount. It's a great investment for the company. Periods like this often reward patient, well-capitalized investors. We believe the company is well positioned to continue generating solid risk-adjusted returns and building long-term value for our shareholders. We appreciate your continued support. Thank you for your time and interest in Eagle Point Income Company. Lena, Dan, and I will now open the call to your questions. Operator.

So with that I'll hand, it over to our advisors, Chief Accounting Officer, Nino, Nova to walk through our financial results.

We're selective in finding the best relative value opportunities between CLO debt and equity.

Thank you Dan.

Also remained active with our share repurchase program aggressively buying back stock, which we believe is undervalued.

<unk> increased the program, giving us more flexibility to keep buying our own stock at a discount.

Great investment for the company.

Periods like this often reward patient well capitalized investors and we believe the company is well positioned to continue generating solid risk adjusted returns and building long term value for our shareholders.

Including unrealized portfolio gains GAAP net income was 11 million or 43 cents per share for the third quarter of 2025.

Company's third quarter net income was comprised of investment income of 16 million and then realized gains on investments of five Neil N, partially upset by financing and activating expenses up six nealon realized losses. After me Neil N and then realized losses. So the liabilities are recorded at fair value of one.

We appreciate your continued support.

Thank you for your time and interest in Eagle point income company.

Lena Dan and I will now open the call to your questions operator.

Thank you we will now be conducting a question and answer session.

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from the line of Erik Zwick with Lucid Capital Markets, LLC. Please proceed with your question.

I'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two to remove yourself from the queue for participants using speaker equipment. It may be necessary to pick up the handset before pressing the star keys.

Additionally, other comprehensive income was 1 million for the third quarter.

We paid three months of distributions of 13 cents per share during the quarter and earlier today, we declared three monthly distributions up 11 cents per share for the first quarter of next year.

One moment, please while we poll for question.

At September month end, the company had outstanding preferred equity securities, which totaled 35% of total assets less current liabilities.

Okay.

Our first question comes from the line of Erik Zwick with Lucid capital markets LLC. Please proceed with your question.

This is at the top end of our long term target leverage ratio range of 25% to 35%, whereas we expect you to read the company under normal market conditions.

Eric how are you.

Hey, Thanks, Good morning, good to talk to you again today I wanted to start just looking at slide 26, and it seems you know in the most recent data for revenue and EBITDA change for below investment grade companies that we've seen a little bit of a pick up here and then if we kind of take the fed cuts and reductions in so far that we've already.

Thomas Majewski: Hey, Erik, how are you?

Erik Zwick: Hey, thanks. Good morning. Good to talk to you again today. Wanted to start just looking at slide 26, and it seems, you know, in the most recent data for revenue and EBITDA change for below investment grade companies that we've seen a little bit of a pickup here. If we kind of, you know, take the Fed cuts and reductions and so forth that we've already seen and maybe extrapolate the futures curve a little bit, it seems like, you know, kind of profits for companies are trending in a positive direction. Just curious, you know, what that means for your expectations in terms of, you know, credit quality going forward. There certainly are some, you know, some concerns in the market today and some unknowns with the macroeconomic.

The companies are this coverage ratio at quarter end for preferred stock calculated in accordance with investment Company Act requirements was 285%. This is comfortably above the statutory requirement of 200%.

<unk> seen and maybe extrapolate the futures curve a little bit it seems like.

As of September month end, the company's N. A D was 256, nealon or $14.21 per share an increase versus $14.08 per share as of June month end.

What kind of profit for.

Companies are trending in a positive direction. So just curious what that means for or your expectations in terms of credit quality going forward. There certainly are some.

During the quarter, we repurchased over one 5 million shares of our common stock with a total amount of 21, Neil N at the average discount to NAV of eight 3% as share. This is resulted in N. A the accretion of seven cents per share.

You know some concerns in the market today, and some unknowns with the macroeconomic but wondering if you kind of put that together and kind of.

Erik Zwick: You know, wondering if you kind of put that together and kind of relay some thoughts on future credit quality.

Related some thoughts around future credit quality.

Yes, a very good question and on this on this page, which is that looks like page 26 in the deck.

Thomas Majewski: Yeah. A very, very good question. On this, on this page, which looks like page 26 in the deck, you can see data going back, you know, over a decade, going back to 2012. You know, generically below investment grade companies should be growing at a faster rate than the economy. That's, you know, just kind of the, the nature of the beast. They're levered, they're growth oriented, in many cases, sponsor backed. If you look at the last few quarters, in general, you can see a positive revenue trend, and, you know, a positive-ish EBITDA trend, not as, not as good as the revenue trend. There's a little bit of a spread there. Overall that's what we like to see.

I'd like to highlight that all of the purchase shares were retired.

Can see data going back.

Looking at our first of all the activity during the month of October the company received reoccurring cashless on its investment portfolio of 17 Neil N.

Over a decade going back to 2012.

Generically below investment grade companies should be growing at a faster rate than the economy. That's just to kind of the nature of the beast, they're levered, they're growth oriented in many cases sponsor backed.

I would like to highlight that some of the company's investments I still expect it to make payments later in the quarter.

As of October month end net authentic investment transactions and settlement. The company had 55 million of cash and revolver capacity available for investment and other purposes.

Sure.

If you look at the last.

Few quarters in general you can see a positive revenue trend.

Uh huh.

Management's unaudited estimate of the company's NAV as of October month end was between $10.94 and $14.04 per share.

Positive ish EBITDA trend not as not as good as the revenue trend is a little bit of a spread there.

But overall, that's what we like to see.

The.

I'll now turn the call back over to Tom who will provide closing remarks before we take your questions.

Thomas Majewski: This goes through Q2, which does include some of the tariff related behavior. Q3 data still kind of being finalized right now. Overall, you know, we view this as directionally credit positive. You know, these numbers, I don't want to say they can never be big enough. If the 6.3 and 4.3 were double, we wouldn't object for sure. If they were triple, we might wonder what's going on. Overall, the, you know, the growth of these companies, is very much moving back into the right direction. We certainly had a little bit of shock earlier in the year.

Goes through Q2, which does include some of the tariff related behavior Q.

Thanks Lina.

Q3 data still kind of being finalized right now, but overall, we view this says directionally credit positive.

The third quarter demonstrated our focus on actively managing our portfolio and executing our strategy across shifting market conditions, we were selective in finding the best relative value opportunities between CLO debt and equity.

These numbers.

I don't want to say they can never be big enough. If they were both if the six 3% and $4 three were double we wouldn't object for sure. If they were triple we might wonder whats going on.

We also remained active with our share repurchase program aggressively buying back stock, which we believe is undervalued.

But overall the growth of these companies.

The board increased the program, giving us more flexibility to keep buying our own stock at a discount.

Is very much moving back into the right direction, we certainly had a little bit of shock earlier in the year, but the takeaway here of topline and bottom line are growing.

A great investment for the company.

Thomas Majewski: If the takeaway here, you know, if top line and bottom line are growing, you know, those are credit positives, you know, broadly for the companies we deal with.

Those are credit positive.

Broadly for a product for the companies we deal with.

Yeah, if I might add this is Dan <unk> speaking.

We appreciate your continued support.

Dan Ko: Yeah. If I might add.

Thank you for your time and interest in Eagle point income company.

Thomas Majewski: Sure.

As long as these companies continue to grow revenue and EBITDA, we haven't seen it defaults pick up materially and if anything is kind of maybe the growth rate increases will likely see I guess defaults start to slow down which we've seen.

Dan Ko: This is Dan Ko speaking. I mean, as long as these kind of companies continue to grow revenue and EBITDA, we haven't seen defaults pick up materially. If anything, as kind of maybe the growth rate increases, we'll likely see, I guess defaults start to slow down, which we've seen, you know, in some of the kind of the research that we're seeing, the outlooks for next year are kind of seeing default rates come down. We've even seen the percentage of kind of LMEs relative to last year kind of come down. Generally with lower rates should lower the interest costs for a lot of these companies. From a credit standpoint should be at least some tailwinds going into next year.

Anna Dan and I will now open the call to your questions operator.

Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad a.

And in some of the kind of the research that we're seeing at the outlooks for next year and kind of seeing default rates come down we've been seeing the percentage of kind of <unk> relative to last year kind of come down and so generally with lower rates should lower the interest cost for a lot of these companies. So from a credit standpoint should be at least some some tailwind circle.

Confirmation tone will indicate your line is in the question queue. You May press star two to remove yourself from the queue for participants using speaker equipment. It may be necessary to pick up the handset before pressing the star keys.

One moment, please while we poll for questions.

Going into next year.

Yeah.

That's all that's all great to hear and then on the next slide Slide 27, there's been a noticeable increase in annual trading volume really since two.

Our first question comes from the line of Erik Zwick with Lucid capital markets LLC. Please proceed with your question.

Erik Zwick: That's all, that's all great to hear. On the next slide 27, there's been a, you know, a noticeable increase in annual trading volume really since 2020 maybe, notwithstanding 2021. It looks like 2025 is on pace to be a record, if I just extrapolate into Q4 from the first 3 quarters. I guess maybe a 2-part question. One, what has driven that increase over the past, call it, you know, 5 plus years? 2, what does it mean for your business in managing Eagle Point Income Company?

Eric how are you.

2020, maybe notwithstanding 2021 and it looks like 25 is on pace to be a record.

Hey, Thanks, Good morning, good to talk to you again today.

I wanted to start just looking at slide 26, and it seems you know.

If I can just extrapolate into fourth quarter from the first three quarters. So one I guess, maybe a two part question one what has driven that increase over the past call. It five plus years into what has what does that has or what does it mean for your business and managing Eagle point income company.

In the most recent data for revenue and EBITDA change for below investment grade companies that it's we've seen a little bit of a pick up here and then if we kind of take their fed cuts and reductions in so far that we've already seen and maybe extrapolate.

The futures curve, a little bit it seems like.

Sure.

So in terms of kind of trading volumes I think some of that has to do with the fact that there was just more eyes on clo's.

You know kind of profit for our companies.

Dan Ko: Sure. In terms of kind of trading volumes, I think some of that has to do with the fact that there are just more eyes on CLOs. I think people have recognized just the premium yields that you can receive, as well as the low credit expense for CLO debt relative to kind of other fixed income asset classes, rated fixed income asset classes that are out there. I think people have seen just the data on how well it's performed, we're seeing a lot more activity within the CLO space. There are more entrants kind of looking at buying CLO debt as well as CLO equity, which has kind of increased the competitive landscape of being kind of the established player in the space.

Companies are trending in a positive direction. So just curious what that means for or your expectations in terms of credit quality going forward. There certainly are some.

I think people recognize.

The premium yields that you can receive as well as the low credit expense for CLO debt relative to kind of other fixed income asset classes rated fixed income asset classes that are out there. So I think people have seen just the data on how well it's performed and so we're seeing a lot more activity within the CLO.

Some concerns in the market today, and some unknowns with the macroeconomic but wondering if you kind of put that together and kind of.

Relate some thoughtful future credit quality.

Yeah, a very very good question and on this on this page, which is that looks like page 26 in the deck you can see data going back.

Space there are more entrants kind of looking at buying CLO debt as well as equity, which is kind of increase the competitive landscape of being kind of the established player in this space certainly helps in that.

Over a decade going back to 2012.

And you know generically below investment grade companies should be growing at a faster rate than the economy. That's just kind of the nature of the beast, they're levered, they're growth oriented in many cases sponsor backed.

Dan Ko: Certainly helps in that, you know, we're a top counterparty for nearly all the desks that are out there, both on our debt and equity standpoint. Then for your second part of your question, some of that, I guess, of the increase is really due to, I guess, the advent of ETFs that have come along kind of over the past couple years or so. A lot of the, I think the investment-grade trading activity is probably related to ETFs, some of the non-investment grade as well. Ultimately, we think that the additional liquidity that we're seeing within the market, I think is good in that, it allows us to be able to take kind of views on certain investments to buy and sell.

A top counterparty for nearly all the desks that are out there both on our debt and equity standpoint.

And then <unk> second part of your question some of that.

If you look at the last.

A few quarters in general you can see a positive revenue trend.

I guess of the increase is really due to I guess, the advent of Etfs that have come along kind of over the past couple of years or so so a lot of the.

And.

Positive ish EBITDA trend not as not as good as the revenue trend is a little bit of a spread there.

I think the investment grade trading activity is probably related to ETF some of the non investment grade as well, but ultimately we think that the additional liquidity that we're seeing within the market. I think is good in that it allows us to be able to take kind of views on certain investments to buy and sell and the bid ask.

But overall, that's what we like to see.

<unk>.

The.

This goes through Q2, which does include some of the tariff related behavior Q3 data still kind of being finalized right now, but overall yeah. We view this says directionally credit positive yeah. These numbers.

Typically for a lot of these tranches has kind of tightened.

Dan Ko: The bid-ask, typically for a lot of these tranches, has kind of tightened. Just an easier way for us to kind of express views, on our positions.

When I say, they can never be big enough. If they were both if the 6.3 and 4.3 were double we wouldn't object for sure. If they were triple we might wonder whats going on but overall the growth of these companies.

So just a.

An easier way for us to kind of expressed views on our positions.

Thanks, and last one for me.

Erik Zwick: Thanks. Last one from me, just making sure I'm following your thoughts correctly. With reducing the dividend, going into 1 2 of 2024, safe to assume, you know, I think you mentioned, you know, it's primarily due to the Fed rate cuts we've seen and maybe some more coming. Safe to kind of assume that you feel the earnings power of the portfolio is likely to trend down somewhat here from this level that you reported in the most recent quarter?

Making sure I am following your your thoughts correctly, you went to reducing the dividend.

It is very much moving back into the right direction, we certainly had a little bit of shock earlier in the year, but the takeaway here topline and Bottomline are growing.

Going into <unk> of next year safety.

Safe to assume here I think you mentioned you guys primarily due to.

The fed rate cuts that we've seen in maybe some more coming.

Those are credit positives.

Broadly for a product for the companies we deal with.

Safe to kind of assume that you feel the earnings power of the portfolio is likely to trend down somewhat here from from this level that you reported in the most recent quarter.

Yeah, if I might add stanko speaking.

As long as these companies continue to grow revenue and EBITDA, we haven't seen into false pick up materially and if anything is kind of maybe the growth rate increases will likely see I guess, the false start to slow down which we've seen it.

Yes it has.

Something to do obviously with rates.

Dan Ko: Yeah. I mean, it has something to do, obviously the rates is a driver of that for the CLO debt portfolio. You know, we are making some rotations within the CLO equity portfolio to kind of increase earnings and to offset some of that as well as some other higher yielding investments. We change the dividend rate to what we see as kind of the near term kind of rate that can be supported. Obviously many factors kind of go into determining that each quarter along with the board. At least for Q1, we think that that's kind of the appropriate level.

As a driver of that for the CLO debt portfolio, but we are making some rotations within the CLO equity portfolio to kind of increase earnings and to offset some of that.

And in some of the kind of the research that we're seeing at the outlooks for next year and kind of seeing default rates come down we haven't seen the percentage of kind of <unk> relative to last year kind of come down and so generally with lower rates should lower the interest costs for a lot of these companies. So from a credit standpoint should be at least some some tailwind.

As well as some other invest higher yielding investments. So we do we change the dividend rate to what we see as kind of the near term kind of a rate that can be supported.

But obviously many factors go into determining that each quarter, along with the board, but at least for Q1, we think that that's kind of the appropriate level.

Going into next year.

That's all that's all great to hear and then on the next slide Slide 27, there's been a noticeable increase in annual trading volume really since.

Thank you for taking my questions.

Of course.

Erik Zwick: Thank you for taking my questions.

Dan Ko: Of course.

Thank you. Our next question comes from the line of Timothy.

2020, maybe notwithstanding 2021 and it looks like 25 is on pace to be a record if I can just extrapolate into fourth quarter from the first three quarters. So one I guess, maybe a two part question one what has driven that that increase over the past call. It five plus years into what has what does that has or what does it mean for.

Operator: Thank you. Our next question comes from the line of Timothy D'Agostino with B. Riley Securities. Please proceed with your question.

The gasoline <unk> with B Riley Securities. Please proceed with your question.

Yes, hi, thank you.

Kind of piggybacking off that last question in terms of like.

Timothy D'Agostino: Yeah. Hi, thank you. Kind of piggybacking off that last question in terms of like asset rotation. It seems quarter-over-quarter CLO debt decreased, that kind of breaks the trend of the past four quarters of, you know, like more CLO debt assets. It also seems like you're holding a lot more cash. I was just kind of wondering if you could provide some color around that activity. Thank you.

Asset location, it seems quarter over quarter.

All of that.

For for your business and managing Eagle point income company.

<unk> decreased.

That kind of break the trend of the past four quarters out.

Sure.

More CLO debt assets. It also seems like you're holding off more cash I was just kind of wondering if you could provide some color around.

So in terms of kind of trading volumes I think some of that has to do with the fact that there was just more eyes on Clo's I think people recognize that.

Around that activity. Thank you.

Yeah sure. So thanks, Tim for your.

I mean, there wasn't a lot of refis and resets that have been happening in the CLO market.

Dan Ko: Yeah, sure. Thanks, Tim, for your question. I mean, there has been a lot of refis and resets that have been happening in the CLO market, as kind of the spreads for some of the older season kind of positions were in the money for the equity to kind of refinance. We saw a lot of pay downs in those investments. It is obviously sad to see kind of the higher yields go away, but it is also good to get par back a lot sooner than we had anticipated, certainly when we bought some of these at discounts. We have seen a little bit of a build-up in cash.

It is kind of the spreads.

For our for some of the.

The older season kind of positions we're in the money for the equity to kind of refinance and so we saw a lot of pay downs in those investments. So it's obviously.

Sad to see kind of the higher yields go away, but it's also good to get power back a lot sooner than we had anticipated and certainly when we bought some of these at discounts and so we have seen a little bit of.

Tom counterparty for nearly all the desks that are out there both on our debt and equity standpoint.

Buildup in cash.

As we announced some of that cash is going to be used to pay down the EIC Bs.

Dan Ko: As we announced, some of that cash is going to be used to pay down the EICB later this quarter. That's kind of, I guess, why we have a little bit of a little more cash than usual. Also it's kind of finding the right kind of relative value in investments. CLO BBs are by no means kind of a sector that we're trying to exit, but trying to pick our spots given that, you know, most of the paper that we think that's interesting today is actually less new issue, but probably more refis and resets. They do come with a little bit of kind of hair in the portfolios. They're not as squeaky clean as new issue is.

And then three is the second part of your question some of that I guess.

Later this quarter, so that's kind of.

The increase is really due to I guess stay at advent of Etfs that have come along kind of over the past couple of years or so so a lot of the.

I guess, why we have a little bit of a little more cash than usual.

But also it's kind of finding the right kind of relative value and investments CLO double BS are by no means kind of.

Our center that we're trying to exit but trying to pick our spots given that most of the paper that we think thats interesting today is actually.

Less new issue will probably more refis and resets, but they do come with a little bit of kind of hair in the portfolios and they're not as squeaky clean as new issue is but you can pick up 50 to 100 basis points potentially so kind of picking our spots and then also kind of trying to pick our spots for CLO equity as well as kind of other sort of higher yielding.

Typically for a lot of these tranches has kind of tightened up so.

So just an easier way for us to kind of expressed views.

Dan Ko: You can pick up 50 to 100 basis points potentially. Kind of picking our spots and then also kind of trying to pick our spots for, you know, CLO equity as well as kind of other sort of higher yielding investments.

On our positions.

Okay. Thanks, and last one for me just.

Investments.

Making sure Im following your your thoughts correctly here with reducing the dividend.

Okay, Great and then just as a follow up to that on the cash component.

Timothy D'Agostino: Okay, great. Just as a follow-up to that on the cash component. You mentioned paying down the Bs. Is that the primary focus to pay down the Bs with the cash, or will you also be looking to buy back common shares? Just trying to understand, you know, like where we could see the cash go more towards. Is it gonna be paying down the Bs 100% and buying backs in common? Or will you really just be focused on paying down the Bs? Thank you.

Going into <unk> of next year.

You mentioned paying down the D is that the primary focus to pay down the beach Caf or will you also be looking to buy back common shares I'm just trying to understand you know what.

Safe to assume you know I think you mentioned you guys primarily due to the.

The fed rate cuts, we've seen in maybe some more coming.

Like where are we could see the cash more towards or is it going to be paying down to below 100% and taking buying back from common or will you will just be focused on paying down the base. Thank you.

Safe to kind of assume that you feel the earnings power of the portfolio is likely to trend down somewhat here from from this level that you reported in the most recent quarter.

Yeah, I mean it has.

Yeah, I mean, it's really it's a focus on the beach that we haven't publicly announced any sort of share buyback I'm.

Something to do I, obviously the rates are at.

Dan Ko: Yeah. I mean, it's really to focus on the Bs. We haven't publicly announced any sort of share buyback. I'm sorry. We have announced a share buyback. I apologize. Yes. I mean, so we'll be using it for both, so that we'll pay back the Bs and then, you know, I think we said in the script that we'll aggressively look to buy back the common. You know, we'll be using it for ultimately for both.

As a driver of that for the CLO debt portfolio, but we are making some rotations within the CLO equity portfolio to kind of increase earnings and to offset some of that as well as some other invest higher yielding investments. So we do we change the dividend rate to what we see as kind of the near term kind of a rate that can be supported.

Im sorry, Im sorry, we have announced the share buyback I apologize.

Yes, I mean, so we'll be using it for both.

So that will Oh, well payback the bees and then.

I think we've said in the script that we will aggressively look to buyback common so we will be using it for ultimately for both.

But obviously many factors go into determining that each quarter, along with the board, but at least for Q1.

Okay, great. Thank you so much.

Timothy D'Agostino: Okay, great. Thank you so much.

That's kind of the appropriate level.

Thank you.

Our next question comes from the line of Christopher Nolan with Ladenburg Thalmann. Please proceed with your question.

Thank you for taking my questions.

Operator: Thank you. Our next question comes from the line of Christopher Nolan with Ladenburg Thalmann. Please proceed with your question.

Of course.

Hi, Thanks for taking my questions on page 22, you have the largest industry concentration of software and technology, how much of that might be AI or data center related please.

Thank you. Our next question comes from the line of Timothy.

The gasoline O with D. B Riley Securities. Please proceed with your question.

Yeah, Hi, thank you.

Not a ton to be honest.

Kind of piggybacking off that last question in terms of what.

Dan Ko: Not a ton, to be honest. Most of this is kind of enterprise software, so it's kind of software that's really embedded in a lot of companies' operations. It's, you know, stickier credits. It's harder for companies to pull out the software that they're using on a daily basis 'cause it's just that the cost of replacing, meaning both just the actual cost, but also just the time and effort that goes into to replacing the software is very costly. It's been a generally one of the higher industry concentrations within the loan market, and it has generally performed well over the, you know, past several cycles.

Most of this is kind of enterprise software services kind of software that's really embedded in a lot of companies operations.

Asset rotation it seems quarter over quarter.

All of that.

<unk> increased by.

And so it's stickier credits, it's harder for companies to pull out.

I'll kind of break the trend of the past four quarters out.

The software that they're using on a daily basis, because you have assisted the the replacement or the cost of replacing meaning both just the actual cost but also just the time and effort that goes into to replacing the software is very costly. So it's been a generally one of the higher industry concentrations within the loan market.

Like more CLO assets, but also seem to hear holding off more cash I was just kind of wondering if you could provide some color around.

Around that activity. Thank you.

Yeah sure so.

Thanks, Tim for your question I mean, there wasn't a lot of Refis and resets that have been happening in the CLO market.

It has generally performed well over the past several cycles.

As kind of the spreads.

For our for some of the.

As a follow up just a following up to most recent question talk about investing in the double B's.

Christopher Nolan: Great. As a follow-up, just following up to the most recent question talking about investing in the double Bs, when you're looking at deals to invest in, is there particular industries that you're looking to get more exposure on, or does each CLO seem to have a broad-based industry, composition?

The older season kind of positions or in the money for the equity to kind of refinance and so we saw a lot of pay downs in those investments. So it's obviously.

When you're looking at deals to invest in is there a particular industries that you're looking to get more exposure on or does each CLO seem to have a broad based industry composition.

Sad to see kind of the higher yields go away, but it's also good to get power back a lot sooner than we had anticipated. It certainly when we bought some of these at discounts and so we have seen a little bit of it.

Yeah, I mean, most clo's have very similar industry concentrations and loan market and that CLO managers are generally buying kind of what what the what the market is put before them.

Buildup in cash.

Dan Ko: Yeah. I mean, most CLOs have very similar industry concentrations to the loan market, in that CLO managers are generally buying kind of what the market has put before them. You know, you might see, you know, a little bit of tweaks here and there, and maybe a certain manager decides not to buy any kind of oil and gas names because they've been burned in the past. It's kind of hard to avoid some of the higher like, you know, technology and healthcare. Those are typically the two highest concentrations within the loan market. But most people are not materially kind of off index, if you will.

As we announced that some of that cash is going to be used to pay down the EIC B's.

Later this quarter, so that's kind of.

You might see a little bit of tweaks here and there and maybe a certain manager decides not to buy any kind of oil and gas names because they've been burned in the past, but it's kind of hard to avoid some of the higher like technology and health care. Those are typically the two highest concentrations within the loan market, so but but.

It's why we have a little bit of a.

A little more cash than usual.

But also it's kind of finding the right kind of a relative value and investments.

Oh, the double B's are by no means kind of a center that we're trying to exit but trying to pick our spots given that you know most of the paper that we think thats interesting today is actually.

Most people are not materially kind of off index, if you will.

Less new issue, but probably more refis and resets, but they do come with a little bit of kind of hair in the portfolios, they're not as squeaky clean as new issue is but you can pick up 50 to 100 basis points potentially so kind of picking our spots and then also kind of trying to pick our spots for CLO equity as well as kind of other sort of higher yielding.

Great. Thank you.

And for your questions.

Christopher Nolan: Great. Thank you.

Thank you.

Dan Ko: Thanks for your questions.

And we have reached the end of the question and answer session. Therefore, I will now turn the call back over to Thomas <unk> for closing comments.

Operator: Thank you. We have reached the end of the question and answer session. Therefore, I'll now turn the call back over to Thomas Majewski for closing comments.

Great. Thank you very much everyone. We appreciate your interest in Eagle point income company.

Investments.

Thomas Majewski: Great. Thank you very much, everyone. We appreciate your interest in Eagle Point Income Company. We'll continue to work very hard for shareholders. The biggest thing, continuing to aggressively buy back our stock using the buyback program. Good to get the call of the preferred at the highest rate. We'll get that done this year and continue to optimize the company's balance sheet and continue to look for the best investments for the company. We appreciate your time and effort, and time and interest, and we appreciate joining us today. Thank you very much.

Okay great.

We will continue to work very hard for our shareholders. The biggest thing continuing to aggressively buyback our stock using the buyback program.

As a follow up to that on the cash component.

You mentioned paying down the D is that the primary focus to pay down the beach Caf or will you also be looking to buy back common shares I'm just trying to understand you know what.

To get their call of the preferred use of at the highest rate.

Get that done this year and continue to optimize the company's balance sheet and continue to look for the best investments for the company and we appreciate your time and effort and time.

Like what where are we can see the cash though more towards or is it going to be paying down to below 100% and taking buying back from Thomson or will you will just be focused on paying down. Thank you.

Time and interest and we appreciate you joining us today. Thank you very much.

Yeah, I mean, it's really to focus on the beach that we haven't publicly announced any sort of share buyback I'm.

Thank you ladies and gentlemen. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.

Operator: Thank you. Ladies and gentlemen, this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

I'm, sorry, I'm, sorry, we have announced a share buyback and I apologize.

Yes, I mean, so we'll be using it for both Hum so that will oh, well payback the bees and then.

I think we said in the script that we will aggressively.

Look to buyback our common so we will be using it for ultimately for both.

Okay, great. Thank you so much.

Thank you.

Our next question comes from the line of Christopher Nolan with Ladenburg Thalmann. Please proceed with your question.

Hi, Thanks for taking my questions on page 22, you have the largest industry concentration of software and technology.

Much of that might be AI or data center related please.

Not a ton to be honest most of this is kind of enterprise software services kind of software that's really embedded in a lot of companies operations.

And so it's a stickier credits, it's harder for companies to pull out the software that they're using on a daily basis, because your assisted the the replacement or the cost of replacing meaning both just the actual costs, but also just the time and effort that goes into to replacing the software is very costly. So it's been a generally one of the higher end.

History concentrations within the loan market and has generally performed well over the past several cycles right.

Great as a follow up just a following up to <unk>.

Recent question talk about investing in the double BS.

When you're looking at deals to invest in is there a particular industries that you're looking to get more exposure on or does each CLO seem to have a broad based.

Industry composition.

Yeah, I mean, most clo's have very similar industry concentrations that loan market and that CLO managers are generally buying kind of what what the what the market is put before them.

Might see a little bit of tweaks here and there and maybe a certain manager decides not to buy any kind of oil and gas names because they've been burned in the past, but it's kind of hard to avoid some of the higher like technology and health care. Those are typically the two highest concentrations within the loan market. So.

But most people are not materially kind of off index. If you will.

Great. Thank you.

Thanks for your questions.

Thank you.

And we have reached the end of the question and answer session I'll now turn the call back over to Thomas Maciejewski for closing comments.

Great. Thank you very much everyone. We appreciate your interest in Eagle point income company.

We continue to work very hard for our shareholders. The biggest thing continuing to aggressively buyback our stock using the buyback program.

Good to get their call of the preferred use it at the highest rate.

We'll get that done this year and continue to optimize the company's balance sheet and continue to look for the best investments for the company. So we appreciate your time and effort and their time and interest and we appreciate you joining us today. Thank you very much.

Thank you ladies and gentlemen. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.

Okay.

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Yes.

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Yeah.

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Okay.

Yeah.

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